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What is evidence-based investing?
Nobody can establish who first used the phrase 'evidence-based investing', and no regulator defines it. Robin Powell, who was given the name by Larry Swedroe in 2015 and is sometimes wrongly credited with coining it, sets out what it actually means: four tests of what counts as evidence, borrowed from a medical parallel that hit the same crisis twelve years ago. Including where he goes further than a global tracker, and why he holds that position less firmly than he used to.

Robin Powell
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How do small value stocks perform in a recession?
By LARRY SWEDROE Over the long term, small value stocks have rewarded investors with higher returns for their incremental risks. Over the...

Robin Powell
Oct 28, 20223 min read


Predicting growth isn't the same as predicting returns
By LARRY SWEDROE While growth stocks produced higher returns on assets and equities and faster growth in earnings than value stocks,...

Robin Powell
Oct 26, 20223 min read


Indexing has saved investors $403 BILLION since 1996
Asset management, as Robin Powell, recently wrote, is the scary bill you never see . It's huge, and if investors were actually presented,...

Robin Powell
Oct 24, 20222 min read


I learned to stay disciplined the hard way
It can be hard to stay disciplined in a bear market. In fact, the longer it goes on for, the harder it becomes. What’s more, the...

Robin Powell
Oct 22, 20225 min read


Mutual fund alpha as a predictor of stock returns
By LARRY SWEDROE Mutual funds (a type of institutional investor) are generally considered “smart money” that exploits the behavioral...

Robin Powell
Oct 20, 20227 min read


How good are analysts at forecasting earnings growth?
By LARRY SWEDROE In a recent article for The Evidence Based Investor I showed that while growth stocks have produced higher returns on...

Robin Powell
Oct 18, 20224 min read


Valuations and earnings growth rates
By LARRY SWEDROE The expected rate of growth in future cash flows plays a pivotal role in investment analysis and valuations. It is the...

Robin Powell
Oct 14, 20226 min read


The major incentive problem at the heart of active management
We often hear about the cost issue with active management and the fact that most active funds are effectively priced to fail. But, as JOE...

Robin Powell
Oct 12, 20223 min read


The performance of small value stocks over economic cycles
By LARRY SWEDROE Over the long term, small value stocks have rewarded investors with higher returns for their incremental risks. Over the...

Robin Powell
Oct 11, 20223 min read
A book we hope will help to change lives
This Thursday, 13th October, Bloomsbury will publish the new book by Robin Powell and JONATHAN HOLLOW, How To Fund The Life You Want ....

Robin Powell
Oct 10, 20225 min read


Has the rise of indexing made active outperformance even harder?
By LARRY SWEDROE Two strong trends have had a dramatic impact on the investment world over the past few decades — the rise of indexing...

Robin Powell
Oct 7, 20224 min read


Investment management, the scary bill you never see
Instead of focusing on cutting your food and fuel bills in the cost-of-living squeeze, find out what you're paying for investment...

Robin Powell
Oct 6, 20224 min read


Is there a link between GDP growth and emerging market returns?
Intuitively, you would expect there to be a positive correlation between GDP growth and stock returns. But what does the academic...

Robin Powell
Oct 5, 20228 min read


UK equity funds fared dreadfully in the recent downturn
Actively managed UK equity funds have not fared as badly as most of their peers across Europe in recent years. But their performance in...

Robin Powell
Oct 4, 20224 min read


Dawn is breaking on a new era for financial advice
Robin writes: For many people, paying an evidence-based adviser to manage their investable assets makes perfect sense. But, let's be honest, many don’t need it, and many more either can’t afford that type of financial advice or at least would struggle to justify the expense. The good news is that, in both Britain and the United States, dawn is breaking on an exciting new era for advisers and consumers. It's an era in which it won't be just the wealthiest in society who enjoy

Robin Powell
Oct 4, 20222 min read


Skill persists, but luck is ephemeral
Luck plays a part in active fund management as it does in sport. But as CRAIG LAZZARA from S&P Dow Jones Indices explains, only genuine...

Robin Powell
Sep 30, 20223 min read


How do interest rates impact on REIT returns?
By LARRY SWEDROE The “conventional wisdom” — ideas that become so commonly accepted that they go unquestioned — on investing is often...

Robin Powell
Sep 29, 20227 min read


Do recency bias and loss aversion lead to mispricings?
By LARRY SWEDROE The basic hypothesis of behavioural finance is that individual investors are not fully rational when making investment...

Robin Powell
Sep 27, 20227 min read


How a 52-week high hurts returns
LARRY SWEDROE The 52-week high (52WH), the highest price a stock has traded for over the prior 365 days, is one of the key pieces of...

Robin Powell
Sep 22, 20226 min read


Why market predictions are best ignored
We're naturally drawn to stock market predictions. When someone who appears to be an expert says, for example, that the market is about...

Robin Powell
Sep 21, 20225 min read
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